8/21/2019 june22.2015.docHouse approves proposal to unlock mobile wireless devices for consumer protection

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House approves proposal to unlock mobile wireless

devices for consumer protection 

The House of Representatives has approved on third and final reading a proposal

 promoting consumer protection on the purchase of mobile communication devices by

allowing consumers to unlock the mobile wireless devices prior to the expiration of the

lock-in period under the service contract.

House Bill 5!"# or the proposed $%onsumer &rotection on 'obile %ommunication

(ervice %ontract#) prohibits the provision of a lock-in period in a 'obile %ommunication

(ervice %ontract.

The bill# principally authored by Rep. *rancis +erald ,. ,baya st /istrict# %avite0#

aims to protect the general welfare and establish standards of conduct for business and

industry in line with the (tate recognition of the vital role of information and

communications technology in nation-building and also the provisions of ,rticle 1# Title 2

of the %onsumer ,ct of the &hilippines.

,baya# a vice chairman of the House %ommittee on 2nformation and

%ommunications Technology# said the practice by mobile phone and data service providers of locking devices as part of a wireless contract is one of the significant sources

of consumer frustration with wireless services.

$,lthough there exist independent devices or services from third parties that unlock 

the mobile device# this process would normally void the warranty of the mobile device.

/evice locking makes it difficult for consumers to take advantage of the competitive

offers available in the market. *urthermore# it limits the ability of the consumers to avoid

roaming charges while travelling abroad# because it prevents them from using another 

service provider3s service#) said ,baya.

4ltimately# he said the proposal aims to contribute to a more dynamic marketplace

 by promoting consumer choice and wireless competition.

The bill provides that a mobile communication and data network service provider 

that provides a locked device to the consumer# as part of a subscription contract# shall for 

subsidied devices# unlock the communication device or give consumers the means to

unlock the device at the rate provided by the service provider or any of its designated

service agent# upon re6uest prior to the expiration of the lock-in period of the device.

,fter the lock-in period# unlocking of the device shall be free and automatic# the bill

 provides.

NR # 3871

JUNE 22, 2015

8/21/2019 june22.2015.docHouse approves proposal to unlock mobile wireless devices for consumer protection

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The measure further provides that for unsubsidied devices# the device shall be

unlocked upon purchase.

The measure refers to lock-in period as the term of contract between the service

 provider and the consumer wherein the latter must maintain a monthly subscription at an

agreed period to the exclusion of other service providers.

The bill imposes a fine of &5#""" to &5""#"""# upon the discretion of the court# on

violators of the ,ct. 7ikewise# it provides for the suspension of the operation of erring

dealers# retailers or sellers.

The /epartment of Trade and 2ndustry /T20# in coordination with the 8ational

Telecommunications %ommission 8T%0 and other concerned agencies shall promulgate

the 2mplementing Rules and Regulations 2RR0 !" days after the effectivity of the ,ct.

House Bill 5!" substituted HB 5"1 and is co-authored by Reps. 9oel Roy R./uavit# st /istrict# Rial0# 'ariano 'ichael '. :elarde# 9r. &arty-list# B4H,;0# <avier 

9esus /. Romualdo 7one /istrict# %amiguin0# 9onathan ,. /ela %ru &arty-list#

,B,=,/,0# /elphine +an 7ee &arty-list# ,+R20# 'oni6ue ;amin +. 7agdameo st

/istrict# 'akati %ity0# Terry 7. Ridon &arty-list# =,B,T,,80 and ,ntonio 7. Tinio

&arty-list# ,%T T>,%H>R(0. ?"0 rbb